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Hurricane Helene shows how broken the US insurance system is

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By illuminem briefings

· 2 min read


illuminem summarizes for you the essential news of the day. Read the full piece on Wired or enjoy below:

🗞️ Driving the news: Hurricane Helene has devastated parts of North Carolina, exposing flaws in the US insurance system
Many homeowners won't receive compensation for flooding or landslides due to gaps in insurance coverage, which has worsened due to outdated policies and insufficient flood insurance uptake

🔭 The context: The National Flood Insurance Program (NFIP) provides most flood insurance, but only 4% of US homeowners are enrolled
Private insurers typically avoid covering floods or earth movements like landslides, leaving many vulnerable after storms like Helene
North Carolina homeowners face rising insurance premiums, part of a national trend

🌍 Why it matters for the planet: Climate change is intensifying natural disasters, yet insurance systems remain outdated, leaving residents increasingly unprotected against extreme weather events
This amplifies financial losses for those living in disaster-prone areas

⏭️ What's next: The insurance market is grappling with rising costs and political pressure to reform the NFIP, but meaningful changes remain uncertain
In the meantime, more frequent and severe storms could leave more homeowners exposed

💬 One quote: “So many people are just not going to have coverage.” — David Marlett, Brantley Risk & Insurance Center

📈 One stat: Less than 2.5% of homeowners in some Helene-impacted areas of Appalachia are covered by flood insurance

Click for more news covering the latest on climate change

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